NATIONAL FERTILIZER LIMITED(A Govt. of India Undertaking)

(PANIPAT) HARYANA

SUMMER TRANING REPORT

Submitted in partial fulfillment of the requirement of the syllabus

inM.B.A HUMAN RESOURCE

BATCH: 2007-2009

D.A.V INSTITUTE OF MANAGEMENT, FARIDABAD(AFFILIATED TO MAHRISHI DAYANAND UNIVERSITY)APPROVED BY A.I.C.T.E & GOVRNMENT OF HARYANA

FARIDAB

P&A, NFL, PANIPAT PRIYA GUPTA M.B.A (HR)

PREFACE

D.A.V INSTITUTE OF MANAGEMENT, FARIDABAD runs the programme Master of Business Administration. As a student of it I got great opportunity to take practical training in a company that is M/s NATIONAL FERTILIZER LIMITED, PANIPAT.

This institute’s ultimate goal is to give the best to its students and there by to the nation. So, by conducting this practical programme students get practical knowledge during their eight Weeks training programme, that is in various departments of the company.

I have included here in this project information about HUMAN RESOUCRE DEPARTMENT. First of all I include history and development stage of the company. It consists of past, present and some ideas about future also.

PRIYA

ACKNOWLEDGEMENT

It gives me a Great pleasure to present this Report. It indeed goes without saying that the success of my summer training programme at M/s NATIONAL FERTILIZER LIMITED, Panipat (Haryana) is because of direct or indirect guidance of every body at the company and college. I take this opportunity to acknowledge their help and valuable guidance in providing technical know how & reviewing the report.

I here by express my gratitude towards the management of NFL for giving me an opportunity of training in their esteemed organization.

First of all I am very thankful to Mr. V.K. HIRA Mgr. (P&A).

I am deeply thankful to:1. Mr. B.S.JANPANGI Sr. Mgr.

(HRD)2. Mr. S.C.SAINI Dy. Mgr. (P&A)3. Mr. S.K.SAMBHARIA Dy. Mgr.

(HRD)4. Mr. P.JAYRAJAN Asstt. Mgr. (P&A)5. Mr. RAMESH KUMAR P.O. (P&A)

I respectfully thank to the management and all employees of NFL for their valuable assistance, suggestions and their valuable guidance in completing my project report.

Indeed without the help and coordination of the above-mentioned people this report might not have reached to its fruitful completion.

PRIYA GUPTAM.B.AD.A.V INSTITUTE OF MANAGEMENT FARIDABAD

INDEX

1. ABOUT THE COMPANY

2. ABOUT THE UNIT

3. AWARDS & RECOGNITION

. 4. HUMAN RESOURCE MANEGMENT 5. INDUSTRIAL RELATIONS

6. WELFARE SCHEMES

7. STATUTORY SCHEMES

8. NON STATUTORY SCHEMES

9. MOTIVATIONAL SCHEMES 10. OTHER WELFARE SCHEMES

11. SWOT ANALYSIS

12. CONCLUSION

13. BIBLOGRAPHY

COMPANY PROFILE

NATIONAL FERTILIZERS LIMITEDIncorporation

NFL, schedule’A’and a Mini Ratna Category 1 Company was incorporated on 23rd AUG 1974 for implementation of two Fertilizer Plants, based on gasification technology. Of feed stock/LSHSat Bathinda in Punjab and Panipat in Haryana having an installed capacity of 5.11 lakh tones of Urea .In April 1978, the Nangal group of Plants of Fertilizer Corporation of India (FCI) were transferred to NFL consequent upon reorganization of FCI .The govt of India, in 1984, entrusted the Company to execute the country’s first inland gas based Fertilizer project of 7.26 lakh tonnes Urea capacity in district Guna of Madhya Pradesh, This project on completion, received the first prize for “excellence in project management “ from the Ministry of Program Implementation, Govt of India. Expansion of Vijaipur plant was initiated in 1993 for doubling its annual production capacity. The deppt. Of Fertilizers has received the annual installed capacity of Vijaipur Plant from 7.26 lakh tonnes of Urea to 8.26 lakh tonnes with effect from 1stApril 2000.

In order to sustain and enhance the Company’s growth, NFL successfully completed the revamping of Urea Plant at Nangal. with the re-rating of installed capacities of Vijaipur Plant and revamping of Urea Plant at Nangal, the total installed capacity of Urea of NFL has increased to 32.20 lakh tonnes.

YEAR PROFIT & TURNOVER

PANIPAT UNIT NFLNet Profit(Crore)

Turnover(Crore)

Net Profit(croreTurnover(crore)

2007-08 22.33 943.33 152.82 4140.64

2006-07 20.37 799.42 176.10 3865.68

2005-06 30.37 744.84 116.40 3590.52

2004-05 27.03 660.62 160.91 3474.06

2003-04 11.65 698.71 85.04 3387.62PRODUCTION PERFORMANCE

NFL is the second largest producer of nitrogenous fertilizers in India. The company ‘s contribution towards Urea production in the country during 2006-07 is estimated at 16.53% against 16.4% last year.

NFL has been making profit consistently. The Company recorded pre-tax profit of Rs.48.33 crores during 2001-02. However, the increase in profit during the year is on account of past periods arrears of subsidy pertaining to 7th & 8th pricing period

The Company during 2006-07, produced 33.51 lakh tonnes of Urea, thereby achieving a capacity utilization of 103.7% based on the re-assessed capacity

INFORMATION TECHNOLOGY

NFL has brought in latest information technology for its day-to-day use. The Company has a satellite-based communication system installed with the assistance of NIC at its office complex in NOIDA, units and zonal Marketing office. All the locations have Local Area network. The company has its Internet Website WWW.nationalfertilizers.com and intranet website for providing information to all employees.

SPECIALISED SERVICES

The company assesses its human resources as its most valuable assets. NFL, for a long time, has been providing specialized services to outside Companies both in India and abroad. These services include project commissioning, plant operations, maintenance and trouble-shooting. The

company, recently provided training to the engineers of m/s petro vietnam, Vietnam at NFL vijapur.

IMPLEMENTAITON OF OFFICIAL LANGUAGE

With a view to promote the use of Hindi as official language and to meet its provisions, rules made there under and for compliance of related statutory obligations, the company has been making efforts consistently. Cash incentive Scheme has been implemented to provide encouragement to the employees for workings in Hindi. Various competitions and programmes are organized to propagate the use of official language.

MEMORANDUM OF UNDERSTANDING

The Deptt. Of Public Enterprises, Govt. of India, in search of improving accountability and giving higher autonomy to Public Sector Undertakings, introduced the concept of MOU from the early nineties. NFL signed first MOU with Deptt. of fertilizers for the year 1991-92. The company received “Excellent” rating under MOU system for the year 2006-07. The MOU rating for the year 2007-08 based on the audited data is expected to remain as “Excellent”.

MARKETING NETWORK

NOIDA

BHOPAL LUCKNOW CHANDIGARH

These three Zonal offices are coordinating the company’s marketing network: -

1) BHOPAL2) LUCKNOW3) CHANDIGARH

➢ Its central marketing office is at NOIDA.The company during the year 2006-07, recorded the ever best sales of 53.91 lakh tones of fertilizers.

➢ The Panipat unit has developed Neem Coated Urea, which enhance crop yield by an average of 4% to 5%. The co. is planning to market Neem Oil Coated Urea also.

➢ N.F.L is the first Co. in India to be permitted by the Govt. of India to produce and market Neem Oil Coated Urea.

➢ The company has also established single window shop at Solan and Panipat where all agri-inputs are made available at one place.

➢ The company is also marketing Bio-fertilizers in the states of Punjab and Haryana in order to increase its consumption.

National Fertilizer units at a glance : -

The total production capacity of all the four units (Nangal ,Bhatinda, Panipat, vijaipur) is 9550 MT Per Day & other product and By-products are present in the Following:

NFL Units at a Glance

•Vijaipur & Vijaipur Expn.(MP) 1988/97 4800 MT/day

•Panipat (Haryana) 1979 1550 MT/day

•Nangal(Punjab) 1650 MT/day

•Bhatinda(Punjab) 1979 1550 MT/day

Urea : Total Capacity of of all the four Units is 9550 MT per dayOther Products: Liquid O2, N2, Nitric Acid, Methanol, CO2, ArgonBy Product : Sulphur

PANIPAT UNIT PROFILE

The Panipat Unit of NFL.is situated on National Highway No. 1 and Delhi-Amritsar railway trunk route. Panipat city is about 90 km from Delhi and is covered in National Capital Region. Panipat is a historical city, which was the scene of three historical battles. Panipat is also famous for its handloom industry.The Govt. of India approved the Panipat project on 10th February 1975 for implementation. Prime consultants for design, engineering, erection and commissioning of the plant were M/s Toyo engineering corporation of Japan and M/s engineers India Ltd. Starting from the zero-date 30.4.75, the feed in was achieved on 1.9.78 ie. within 40 months of the zero –date. The Unit went in commercial production from 1.9.79. The total cost of the project was rs.221.33 crores.

Performance of the Unit in all areas of its performance has also been acknowledged. It has won number of awards and recognitions in the field of production, productivity, safety, welfare, innovation, environment protection, skills etc. The Unit is well known for its commitment towards environment protection and social welfare in the region.Panipat Unit is considered the show window of the company. The Unit being near to national capital, it hosts a number of distinguished guests and visitors from with and outside the country. The visitors show keen interest in the functioning of the plant and appreciate the progress made by the fertilizers industry in the country.

SALIENT FEATURES OF THE PLANT

1. Annual Capacity : 5,11,500 MT In terms of Urea 2,35,290 MT in terms of Nit.

2. Annual Requirement of Raw Materials:• Fuel-oil/LSHS : 3,00,000 M.T.• Coal : 5,45,000 M.T.• Power : 2,18,000 M.W.H• Water : 5,630 Million Gallon

1. Estimated Cost : Rs. 182.88 crores

2. Foreign Exchange : Rs. 56.45 crores

3. Capacities of the Plant :• Ammonia : 900 M.T. per day• Urea : 1,550 M.T.per day• Steam Generation : 3 boilers each of 150

MT/hr.• Captive Power Plant : 1 boiler of 210 MT/hr

2 Turbo generation of 15 *2 =30MWH

6. Land : 442Acres- Plant

131 acres- Township

NFL produces two popular brands of chemical Fertilizers, ie Kisan Urea. &Kisan Khad.NFL has signed a memorandum of understanding with the govt. of India in 1991-92. All the years, after signing the MOU, Govt. has rated the performance of the company as ‘excellent’. Company has been performing at high level of capacity utilization.

PLANTS UNDER PANIPAT UNIT

AMMONIA UREA PLANT SMC OFFSITES

AMMONIA PLANT

The ammonia plant is based on fuel oil as feedstock and is designed to produce 900 MT/Day of Ammonia. The fuel is partially oxidized in the gasification reactor at 1,350 degree C by shell gasification process. The raw gas produced in the reactors mainly consists of H2, CO, CO2 and H2S. The heat generated in the process is recovered in the waste heat boilers to produce High-pressure steam at 100 Kg/Cm2.about 80% of the carbon produced in the Gasification Reactors, is recycled along with the feedstock.

Hydrogen Sulphide (H2s) in the raw gas is removed by absorption in cold methanol in desulphurisation Section of Rectisol. The Carbon monoxide (Co) in the desulphurised gas is converted to Carbon Di Oxide (CO2) by double stage H.T. Shift Convension. The CO2 is, later, removed from the process gas in Decarbonation Section of Rectisol. H2S and CO2 from the Raw Gas/ process gas are removed by low temperature Methanol in the Rectisol Section and both the gases are recovered by regeneration of Methanol at low pressure. H2S in the form of clause gas is sent to Sulhur Recovery Plant for recovery of Sulphur. The CO2 gas is sent to Urea Plant for synthesizing with Ammonia to manufacture Urea. An Absorption Refrigeration Unit (ARU) provides refrigeration in Rectisol Section.

AMMONIA PLANT

The process gas from Rectisol Section is sent to the Nitrogen Wash Unit (NWU) to remove the traces of impurities (CO, Methanol, and Methane) by liquid Nitrogen wash. Nitrogen is further added to the process gas (i.e. Hydrogen) to obtain a ratio of 3 : 1 of N2 & H2. This synthesis gas mixture is compressed to 230 Kg/Cm2 pressure and synthesis of N2 and H2 is carried out in the Haldor Topsoe loop in a radial flow Ammonia Convertor and Ammonia is produced.

Oxygen requirement (for partial oxidation of fuel oil) and Nitrogen requirement (for synthesis gas) is met by an Air Separation Unit of 900 MT/ Day capacity. In ASU, the atmospheric Air is compressed to 7 Kg/Cm2 and liquefied. Oxygen and Nitrogen are separated in HP and LP Distillation columns at cryogenic temperatures.

UREA PLANT

Urea Plant is designed to produce 1,550 TPD based on Mitsui Toatsu Total Recycle ‘C’ improved process. The Ammonia and Carbon Di-oxide, produced in Ammonia plant, are pressurized to about 250 Kg/cm2 pressure. Synthesis takes place in Urea Reactor, where Ammonia and CO2 react at 250 Kg/cm2 pressure and 200 degree C temperature to produce Urea. The Reactor outlet products are then decomposed. The Urea solution, produced in this process, is crystallized in the Vacuum

Crystallizer. Crystal slurry is centrifuged to separate crystals, which are then dried in the dryer and pneumatically conveyed to the top of prilling tower. Urea crystals are melted in the melter and the molten Urea is sprayed through Acoustic Granulators from 68-meter high prilling tower. Urea in the form of prills is collected at the bottom of the prilling tower on CFD bed, where it is cooled by air. Products Urea is, then, sent to Bagging Plant and bagged in 50 kg bags.

UREA PLANT

PROCESS OF MANUFACTURING UREA

For manufacturing urea, first of all fuel oil is burnt at 1350oC & we get Carbon monoxide (CO) & Hydrogen (H2). With the help of air separation unit Nitrogen gas is separated from air. Carbon monoxide is converted into Carbon dioxide. Then Nitrogen & Hydrogen is combined to get Ammonia & then by the reaction of Ammonia & Carbon dioxide we get Urea. This is the whole process of manufacturing Urea:-

Burning at 1350oC

Fuel Oil CO + H2

Extracting

ASU (Air separation unit) N2 (Nitrogen) + O2 (oxygen)

N2 + 3H2 2NH3

CO CO2

NH3 + CO2 UREA

PRODUCT MANUFACTURED AT NFL, PANIPATMAIN PRODUCT –UREA

Kisan urea is highly concentrated, solid, nitrogenous fertilizer, containing 46.0% nitrogen. It is completely soluble in water hence nitrogen is easily available to crops. Kisan Urea is ideally suitable for all type of crops and for foliar spray, which instantly removes nitrogen deficiency. Kisan Urea also has a strong and long lasting effect on crop resulting in quality crops. Carbonic acid present in Kisan Urea helps in absorption of nutrients like phosphate and potash by roots of crop.

PRODUCTION PERFORMANCE- Peaks in production scale are as follows:-

RECORDS:

Highest production of ammonia on single day

1041MT (against 900MT/Day rated capacity) on 02.1.1998

Highest production of urea on single day

1918MT (against 1550MT/Day rated capacity) on 17.12.2000

Highest annual production of ammonia(97-98)

316619MT (against 297000MT rated capacity)

Highest annual production of urea (97-98)

562250MT (against 511500MT rated capacity)

PERCENTAGE SHARE OF NFL IN COUNTRY’S UREA PRODUCTION

OFF SITES & UTILITIES

The Off Sites and Utilities consist of following facilities:

Raw Water Reservoirs &Filtration Plant: To store 85 million gallon of water to meet 7 days requirement. The filtration plant is of 2,400 M3/hr.

Demineralized Water: To supply 400 M3/hr.of demineralized water and to polish 100 M3/hr. of condensate.

Steam Generation Plant: Three pulverized coal fired boiler of 150 T. /hr. each at 105 kg/cm2 pressure and 495 degree C temperature.

Instrument and Plant Air: Four Instrument Air Compressors and one Service Air Compressor, each of 1,420 NM3/hr.capacity.

Cooling Tower: Four cooling towers for Ammonia, Captive Power and Urea Plants.

Coal Handling: To supply 150 MT/hr. of crushed coal to three Steam Generation Plant Boilers and 200MT/hr. to Captive Power Plant Boiler.

Fuel Oil Handling and Storage: Three tanks for storage of fuel oil, each of 10,000 KL capacity. Facility for unloading a rake of railway tank wagons of fuel oil/LSHS.

LPG, Methanol, LDO and Caustic Handling: Facility for unloading and storage.

Emergency Power: D.G. set of 1,500 KW capacities. Railway Siding: To unload Coal, Fuel Oil, Caustic and Methanol. To load bagged urea. To load unload liquid Ammonia.

SMC

S: - STEAM GENERATION PLANT

M: - MATERIAL HANDLINGC: - CAPTIVE POWER PLANT

CAPTIVE POWER PLANT

The Captive Power Plant has been installed to meet the total power requirement of the plants. Two Turbo Generation of 15 MW each, generate power at 11 KV. The Power Plant can be run in parallel with the northern grid or in isolation. A Boiler of 210 t/hr. has been provided to supply steam to the Turbo Generators and meet part of the steam requirement of the process plants. The Boiler is designed to operate on coal with support oil or fully on fuel oil.

AWARDS &

RECOGNITION

AWARDS

NFL plants have all along remained recipients of several prestigious awards based on improvements in productivity, safety, energy conservation & environment. The company bagged a no. of awards during 2006-07 & 2007-08 (up to Sep-2007). The Vijaipur unit has received National Prashansa Patra Safety Award-2005 from National Safety Council for outstanding safety management. Green Tech Safety Award-2005 & Green Tech Environment Excellence Silver Award -2006 & 2007 for outstanding achievement in environment management in Fertilizer sector. Vijaypur II unit has also won 2nd prize & certificate for Energy efficient unit in the national awards for excellence in Energy management conducted by CII, Sohrabji Godrej Green Business Centre, Chennai.

Type of Award Awarding agency YearProductivity award Fertilizer Association of

India, Govn. Of India1st in 20052nd in 20063rdin 2007

Environment Protection & conservation

Haryana Pollution BoardGovn. Of Haryana

1999,2002

Jawaharlal Memorial Award for best PollutionControl measure

International Green Land Society

2001-02, 2005

Environment Mgmt. & Conservation Award

Haryana Pollution Control board

2004

PM’s ShramVir Awardto four technician

Govn. Of India 2005

Tech innovation Fertilizer Association of India, Govn. Of india

1st in 2005-06

Golden Peacock Innov.. Award on innovation of Neem coated Urea

Institute of recognition, New Delhi

2005

RECOGNITION

Type of recognition Recognizing Agency Period of Recognition

ISO—9001 International CertificationServices Pvt. Ltd.

Jan 2007

ISO—14001 International CertificationServices Pvt. Ltd.

Jan 2007

ISO-- 18001 International Certification Services Pvt. Ltd.

Jan 2007

ENVIRONMENTAL CONTROL & ECOLOGICAL BALANCE AT, NFL PANIPAT

Panipat unit is acknowledged for its environmental friendliness. The unit is fully conscious of its responsibility towards pollution control &environmental protection. Utmost care is taken to ensure that no harmful gases are discharged to the atmosphere. The unit is regularly monitoring the level of emission for various stacks before letting down to atmosphere.In order to maintain ecological balance, in and around the factory and township, a dense green belt has been provided and about 3 lakh trees have been planted within the factory and township premises.

SAFETY & FIREManagement is always conscious about the safety of employees. Safety Department, with well-qualified and experienced safety engineers, ensure that working conditions are safe. Safety procedures are followed by all and sundry. Safety department increases the awareness about safety amongst the employees by way of seminars, exhibitions, slogans bulletins, safety competitions and good house keeping contests. Practical training is also given to the employees.Unit has received number of awards, from national and international organizations, for safety performance. National Safety Council of Chicago has awarded the unit in 2004 for 6 millions man days without occupational injury.

OBJECTIVE

➢ To produce and market fertilizers and by products efficiently and economically besides achieving a reasonable and consistent growth.

➢ To effectively manage the assets and resources of company to ensure a reasonable return on investment and maximize internal resources As part of diversification and maintenance soil health to market other fertilizers in addition to nitrogenous fertilizers

➢ To maintain international quality of production and services as per ISO –9002 and aiming at achieving customer satisfaction and delight.

➢ To carry out R&D activities for increasing plant availability energy savings, process improvement and utilizing efficiently in the application of chemicals and fertilizers associating networking with other company’s.

➢ To work out diversification expansion schemes to increase the profitability of the company and to promote development of ancillary industries consistent with the government policy.

➢ To provide services to the farming community by organizing technical training, soil-testing facilities etc.

➢ To develop and maintain organization environment for encouraging individual and group initiative innovation and productivity and by improving employee’s skills through specialized training.

➢ To achieve international standards of excellence in plant and operational safety and maintaining environment as per international standard ISO-14001.

VISION

A world classInnovative

CompetitiveProfitable Fertilizers Enterprise Providing total business solution.

MISSION

TO be leading Indian Fertilizers Enterprise providing quality product system and service in the field of transportation, infrastructure, electricity

and other potential areas.

VALUES

Meeting commitment made to external and internal customer.Foster Learning creativity and speed of response.Respect for dignity and potential for individual.

Loyalty and ride in the CompanyTeam Playing.

H.RMANAGEMENT

CORPORATE OBJECTIVE

➢ NFL is an instrument to the society .To achieve this NFL must:-➢ Select capable people and improve their knowledge and skills on

organized basis.➢ Motivate and enthuse the employees to achieve higher productivity

with team spirit.

➢ Lay down integrated objective, define individual goals and maintain an atmosphere conducive to achieve this goal.

MICRO OBJECTIVES

➢ To achieve higher productivity.

➢ Conducting R & D.

➢ To increase profitability.

➢ To improve marketing and consumer services.

➢ To maintain and develop proper organizational environment.

➢ To work out diversification.

➢ To promote development of ancillary industry.

FUTURE PLANS

➢ The company has made plans to rewamp its fuel oil based Panipat & Bathinda plants. The revamp aimed to make the fuel oil based plants more energy efficient is awaiting the disinvestments of the company.

HUMAN RESOURCE MANAGEMENT

An organization is a human grouping in which work is done for the accomplishment of some specific goals or mission .In order to achieve the goal a well run organization works out a set of rules sometimes called polices, programmes, rules, regulations, procedure or guidelines. These are designed not to restrict creativity but to assist its members in accomplishment of the organizational goals.

To look after the various functions set for the organization adequate resources in men and material s have to arranged but individuals who serve as managers or supervisors with in organizations. There musty be proper co-ordination of money, machinery, material and men. The resources by themselves will not help the organization to accomplish the objectives , unless there is an effective co-ordination and utilization of these human resources .This is possible only by the combined efforts of

people the most important resources .Managing the human components the central and most important task, because all else depends on how well it is done .

It is the Human Resource, which is of paramount importance in the success of any organization, because most of the problems in organizational setting are human and social rather than physical, technical or economical.

Human Resource, which is of paramount importance in the success of any organizational because most of the problems in organizational settings are human and social rather than physical, technical or economical.

Human Resources comprise a large number of individuals of different sex, age, socio-religious groups and different education or literacy standards. Each individual who works has his own set of needs, drives, goals and experiences, so the management must therefore be aware not only of the organization but also employees and self needs. No one of these can be ignored so it’s the duty of manager to develop four dimensional relationships these are:-

• Between management and workers.

• Workers themselves.

• Those among the managerial personnel..

• These among different members of the organization and the community.

FUNCTIONS OF HR DEPARTMENTAT N.F.L PANIPAT

1. ESTATE:- Estate means the part of land or the area that comes under the NFL unit PANIPAT .It also includes township and CISF colony of NFL .The houses are allocated to the

employees on the basis of their post or seniority . Mr B.S. JANPANGI does proper utilization of land and building.

2. ADMINISTRATION:-Mr. JANPANGI is the head of administration .He solves various problems related to the administration of the organization. Under this role he also makes arrangements for various tasks time to time.

3. HORTICULTURE:-Horticulture is related with the maintenance of green grounds and to grow more &more trees in order to keep environment clean and pollution free .To maintain beauty & working environment inside the organization, employees are encouraged for growing trees & to maintain green grass parks.

4. FURNITURE AND FIXTURE:- Furniture & fixtures are required by every organization . At NFL Panipat Mr. JANPANGI makes proper arrangement of furniture & fixtures as & when required.

5. DISPATCH:- Dispatch means the various letters ,circulars & memos required by every organization for the proper maintenance of their records. Mr. JANPANGI makes arrangements for all these dispatch.

6. FAX /TELEPHONE:- fax /telephone is also required by every organizations for making contacts with different deptt. Inside organization also with other organizations. Mr. JANGPANGI makes arrangements for all these according to their requirements.

7. GUESTHOUSE:- As NFL unit Panipat is a big organization, so visitors & outsiders come to visit it. There is proper arrangement for their stay.

8. RECRUITMENT:-Whenever there is vacancy in the organization then it tries to attract more and more people to apply for that. Recruitment is not a process of selecting the candidates but it ends with the receipt of applications.

9. ESTABLISHMENT:-Once a candidate is selected for a particular post, then all his documents relating to qualification, age & other factors are verified in establishment department. Also the activities & performance of every employee including promotions are recorded in it. Mr. ALOK VERMA handles all these activities.

10. PUBLIC RELATIONS:- The public relations of an enterprise affects its profits to a large extent .Mr. ALOK VERMA tries to establish harmonious relations with the members of public to increase the profitability of the enterprise .

11. MEDICAL CLAIMS:- As NFL provides medical facilities to all of its employees .NFL gives fund to its employees against their proper medical claims. Mr. ALOK VERMA verifies all the documents relating to medical claim.

12. COMPUTERISATION:- In the present scenario the role of computers is very important in every organization. These stores huge amount of information relating to enterprise.

13. STATISTICAL CELL:- Various documents are required by the organization for the proper flow of information from one place to another. Mr. ALOK VERMA handles statistical document.

14. APPRENTICE:-There is a provision for the training of apprentice inside NFL. Mr. ALOK VERMA handles trade & technical apprentice.

15. INSURANCE:-Mr. ALOK VERMA handles the problems relating to the insurance of employees

16. LIAISONING:-Mr. ALOK VERMA also works as liaison officer .In the role of liaison officer he tries to establish harmonious relations with other departments & other organizations to improve the productivity of the organization.

17. WELFARE:- Every organization has some welfare policies. These policies may relate to performance & promotion of employees.

18. LEGAL:-An organization may face many legal problems relating to organization & employee. Dy. Mgr handles all the legal problems.

SOME OTHER IMPORTANT FUNCTIONS OF HRD

Assessing training needs for Tech. apprentice employees

Organizing house training programmes

FUNCTION OF PERSONNEL MANAGEMENT

The function of personnel management may be divided into three parts-

MANAGERIAL OPERATIVE ADVISORY

Planning Procurement of personnel Rules & regulations

Organizing Development of personnel Laws

Staffing Compensation to personnel Discipline

Directing Employees benefit schemes Code of conduct

Controlling Maintaining good industrial relationsRecord keeping

Personnel planning & Evaluations

Personnel audit & Research

P&A AS A CENTRAL SUB SYSTEM IN ANORGANISATION

OBJECTIVES OF P&A

The objective of P&A is to attain maximum individual development, desirable working relationship between employers & employees and employees & employees. So there must be effective molding of human resources as contrasted with physical resources. As a result there is an integration of interests of employees and management:

INTEGRATION OF INTERESTS

EMPLOYEES INTEREST MANAGEMENT INTEREST

P&ASUB SYSTEM

TECHNICAL SUBSYSTEM MATERIAL

SUBSYSTEM

FINANCE SUBSYSTEM

MARKETTING SUBSYSTEM

Recognize as an individual. Lowest unit personnel cost

Opportunity for expression Maximum productivity

Economic security Availability and stability

Interest in work Co-operation of employees

Safety, healthy working conditions Loyalty of employees

Acceptable hours of work High org morale

Fair and efficient leadership Intelligent initiative of emp.

HUMAN RESOURCE DEVELOPMENTAT

PANIPAT UNIT

The company considers its employees as its greatest asset. It takes care of training needs of the individual employees. A separate HRD Department is established for the purpose.

HRD Department, periodically organizes in house training programmes for the development of skills and updating the knowledge of the employees. The employees are also deputed for institutional training conducted by outside agencies.The managerial staff is exposed to the management programs like motivation, communication, team building, leadership etc.

For the less qualified employees, there is a scheme to improve their qualification. Part time classes are conducted for advanced courses.

HRD section organizes productivity week and the oil conservation week, in which the expert faculty on various aspects of the topics systematically educates the employees systematically educates employees.

H RD D iscip line – F ield o f P ractice

S w a n s o n & H o lto n T ra in in g T & D E m p lo y e e d e v e lo p m e n t T e c h n ic a l tra in in g M a n a g e m e n t

d e v e lo p m e n t E x e c u t iv e a n d le a d e rs h ip

d e v e lo p m e n t H u m a n p e r fo rm a n c e

te c h n o lo g y O rg a n iz a t io n

d e v e lo p m e n t O rg a n iz a t io n a l le a rn in g

M c C le a n

HR DEPARTMENT HIERARCHY

G.M (HR)

Sr.MANAGER HRD

Chief. MANAGER P&A

Additional CMO

Dy.MGR (P&A)

MANAGER (P&A)

MANAGER (P&A)

WELFARE,SCHOOL,CISF.

MEDICAL

STATISTICAL,COMPUTER,ACR/APPS/RECRUITMENT.

GUESTHOUSE

ESTABLISHMENT

P.R

ESTATE, CTV,SANITATIO

CANTEEN,FURNITURE,BUDGET

TEL, FAX DAIRY & DISPATCH/ HINDI

INDUSTRIAL RELATIONS

“Industrial relations “refer to a dynamic and developing concept which is not limited to “the complex of relations between trade union and management but also refers to the general web of relationship normally obtaining between employer and employee- a web much more complex then the simple concept PF labour-capital conflict”.

Industrial relations at Panipat Unit have always been cordial. There is always a communal harmony and all the festivals are celebrated together by all the communities. At panipat unit there is only one registered and recognized workers union i.e. NFEU. The union is affiliated to FWFI. The scheme of workers participation is operated at Unit level. Under this scheme a Plant level committee and six shop councils are functioning satisfactorily. These are: -

➢ Work committee

➢ Canteen advisory committee

➢ Township Welfare Committee

➢ Special Welfare Fund Committee

➢ Grievance Redressal Committee

➢ Livery Committee

➢ Managing Committee of Manoranjan Kendra

➢ Sports committee

DEVELIONEBTS OF INDUSTRIAL RELATIONS – IN INDIA . S1.NO. Contents Page No. 1. Introduction. 12. Industrial Relations 13. Approaches. 3

3.1 Legislative Approach. 33.2 Industrial Disputes Act. 3

3.2.1 Works Committee. 4.3.2.2 Industrial Employment 4. (Standing Order) Act.

3.3 Voluntary Approach. 6.3.4 Joint Management Councils. 6.3.5 Voluntary Arbitration. 7.3.6 Joint Consultation. 7.3.7 Voluntary Arbitration. 8.3.8 Collective Bargaining. 8.3.9 National Commission On Labour. 9.3.10 Worker’s Participation in Mgt. 9.

4. Effects of Best Industrial Relations 10.5. Conclusion. 11.

DEVELIONEBTS OF INDUSTRIAL RELATIONS – IN INDIA .

1. Introduction.The history of industrial Relations ins incomplete without an account of the rise of the organized labour movement in the country. In this section, an attempt is made to describe the rise and growth of the trade union movements in India. Because of this success in organizing labour in important industries, trade unions now have a significant role in the industrial life of the country, inspite of the fact that the number of workers organized in industry in the country really start after the first World War, though prior to that some attempts were made here and there to organize the labour in unions. In the early days of industrialization, the condition of labour was rather appalling and there was no regulation in respect of working conditions and hours of works. Not only that the labour was often physically mal-treated, child labour was also employed. There was very little effort on the part of the Government to do away with these practices. However, due to various reasons and pressures, the Government eventually had to do come thing for the conditions of the labour. The result of such efforts brought about the introduction of Factories Act to regulate to hours of work and the working condition of labour employed in the Factories.

2. Industrial Relations. Industrial Relations generally mean the relationship between the management and the organized labour in an industrial organization of within an industry. Among the various important factors which determine and regulate this relationship are the industrial relation policy of the organization, attitudes of both the management and the labour, strength if the labour unions multiplicity of unions, joint consultation and labour legislations. Industrial Relations, However, is primarily a matter of attitudes, i.e., how does the management feel about the labour and vice. Good relationship can not , however, be grown overnight, but has to be developed by both the parties, over a period. It is only through an attitude of mutual trust and respect that harmonious and cordial industrial relation can develop in an organization of industry.

(2) Harmonious industrial relation within an organization is essential for its efficient running. No organization can function effectively and produce the goods and services if there are constant strafes and turmoil between the management and the labour. It is impossible to introduce any innovation or effect any productivity improvement exclusively through the various industrial engineering techniques. Looking at industrial relations, therefore, from a broader national and economic view point, it is an important pre- requisite for national and economic growth of the country. One of the major problems of developing countries is to increase the per capita income of the population through rapid industrialization as well as through improvement in agricultural field. Industrialization will create more employment opportunities and will help in achieving better standard of living. For raid industrialization, climate has to be created which will encourage investment and attract the enterprise. One of the major actors which attracts investment is the state of industrial peace. No nation can take up a programmer of industrialist ion unless the proper climate prevails. Strafes, un-rests, and lock – outs only lead to loss of man – days in i9ndustries and consequent monetary loss to the nation in terms of lost production.

Everyone whether he is a member of the management or a worker has the responsibility for improving the situation. As a member of a management team, the supervisor is in the fortunate position of being in direct contact with workmen. His role, therefore can be of immense value in promoting good industrial relations in the organization, Frictions and strifes are very often results of unresolved minor day-to – day grievances, favouritism, bad human relation and numerous other reasons which the supervisor may be in a position to take care of. Earlier it was mentioned that good industrial relations is primarily a matter of attitude between the management and the workers and has to be constantly nurtured by both the parties. It is through daily dealing. Justice and prompt handling of grievances that such a spirit of mutual confidence and trust can be built up between the supervisor and his men It should, however, be thought that it is only the Supervisor in the organistion who is responsible for promoting good industrial relations, but it is the responsibility of every member of the organistation. Some of the causes of the disputes may be well beyond his authority to remove and may be requiring the action of the higher management. Nevertheless, his role is stressed because of his unique position in the organization. The supervisor, if he is to carry – out his role effectively to promote good important labour legislations and agencies to settle desputes.

3. Approaches Industrial Relations in India today is regulated through compulsory measures such as-s, legislations, adjudications etc. As well as through voluntary efforts like collective bargaining, joint consultation etc. though by industrial relations we primarily mean the relationship between the management and the organised labour, the Government or Stateplays an important role in regulating this relationship either through intervention or influence.Legislative ApproachThe Government plays a dominant role in shaping the pattern of industrial relations in the country. Historiqlly, this had been mainly through various labour legislations. Conditions of labour also have an important bearing on industrial relations. Beginning in the twenties, when organised labour movement started to take shape, different legislations were passed from time to time aiming to improve the donditions of labour as well to regulate the relationship between the employer and the employee. Among the legislations passed during the 1920’ (s mention can be made of the amendment to the factories Act in 1922, the workmen’s Compensation Act, 1923, and the Mines Act, 1923 in respect of the former and the Indian Trade union Act of 1926 and the trade disputes Act, 1929 in respect of the latter.

3.2 Industrial Disputes Act.In the year immediately following independence, the task before the national Government was to meet the problem of rapid industrialization. To meet this urgent need, it was considered necessary by the Government to continue the practice of regulating industrial relations through legislations. The result was the introductions of an important piece of legislation the industrial disputes Act, 1947, which made a great impact on the industrial relations in the country. The most salient feature of this act is that in the case of an industrial dispute between two parties in an industrial establishment, the dispute is subjected to compulsory adjudication if there is a failure in conciliation proceedings. In other words, this means, that when two parties can not resolve their dispute or can not arrive at a settlement in spite of the efforts of

conciliation officer or a board, then the government compels both the parties to go to a labour qourt, or a tribunal to have their disputes resolved thorugh the process of law. Legal proceedings are always expensive, time consuming and mostly unsatisfactory.

(4) Thus the resolution of a dispute by legal means, more often than not fails to bring about satisfactory results. Under the circumstances, it has often been questioned, as to whether it is correct on the part of the government to force parties to for compulsory adjudication. The genesis for the provision of this section in the Act can be treated to defense of India rules during the Second World War, which prohibited strikes and lock-outs and reference of disputes to adjudication was compulsory. In framing the Industrial disputes Act, this feature of compulsory adjudication was incorporated and in spite of sever criticism, is being retained.The other notable features of the Act are the provisions relating to the formation of the works committee, conciliation and adjudication machinery, procedures for arbitration etc.

3.2.1. Works committee. The Act stipulates the formation of works committees in industrial establishments, where 100 or More workmen are employed. The duties of such works committees, as has been prescribed under the Act, are to promote mea-sores for securing and preserving amity and good relations between the Employers and workmen and to that end to comment upon matters of their common interest or concern and endeavourer to compose any material difference of opinion in respect of such matters. Works committee should contain equal number of representatives from management and workmen. The formation of works committee is a statutory attempt to foster a spirit of joint consultation between the employer and the workmen. Though works committees have been functioning over a considerable period, they have not achieved their purpose very largely due to the fact they have not been able to dispel some of the misconceptions about them and such have not taken deep roots in our industrial the adequate backing of the trade-unions and their areas and functions backing of the properly demarcated, though of late some attempts have been made to revive the activities of the works committee and to rectify earlier mistakes. 3.2.2. Industrial employment (standing orders) Ac The industrial employment (standing orders) Act, 1946, is another important piece of legislation, which also has profound impact on the industrial relations. Though the Act, was passed immediately before the coming of the national government, nevertheless it was the great use in the past independence period.

(5) It has been observed that the cause of poor industrial relations in many cases was due to the fact that the conditions of service were not properly defined. Because the conditions were ill defined, there had been often friction between supervisors and workmen, between the management and the labour both on the shop floor, and as well as in the undertaking in matters like wages, hours of work, discipline etc.The main features of the Act are that it is obligatory on the part of the employer of Industrial undertaking to prepare standing orders when it employs, a certain number of workers. The Act lays down the procedures to be adopted for certification of the standing orders, which the employer wishes to adopt for his organization. Here, the Act has laid down when and how the draft standing orders are to be submitted to the

certifying officer for the certification of the draft. Certair conditions have to be fulfilled before the standing orders are finally certifying officer, before certification officers or the appellate authority are empowered to determine the fairies or reasonableness of the provisions of any standing orders. The certifying officer, before certification of the draft standing orders gives opportunity to be heard and finally decides if any additions or modifications are necessary. The Act has also provisions for appeal to appellate authority. The appellate authority, whose decisions are final, can confirm or amend the standing orders, if necessary. Standing orders after certification have to be posted prominently in gates for the benefit of workers. Unfortunately, though the display of standing orders is a legal obligation and may be posted prominently, as well as should be taken to remedy this state of affair, because the whole purpose of having standing orders in an obligation gets defeated if the employees and they other personnel in the organization are not aware of the various matters provided therein.

Standing orders once certified can not be modified can not be modified until the expirty of six(6) months of from the date of the last modification, except of course when both the employer and theworkemen desire such change through an agreement.

There are occasions when disputes of disagreement arises as to the application or interpretation of standing order. In such cases, the Industrial Disputes Act.1947, for giving a verdict on the matter. The Act also lays down prescribed penalities for an employer for failure to have standing orders for this establishment as well as for commissioning any act in contravention to the certified standing orders.

Voluntary Approach.The other approach to the shaping of industrial relations is through voluntarism.

The thinking behind this approach is that while the legislations will introduce the element of compulsion in industrial relations, opportunities for consultation among the parties should also be considered, to regulate their relationship. If consensus is arrived at through voluntary discussion and mutual consultations, the element of more obligation prevails to honour the commitments. While this object in view a tripartite body on an all India basis comprising of representatives of the Employers, Labour and Government Known as the Indian Labour Conference was set-up in 1942 to have mutal consultation on matters affecting the labour. The conference is held annually and various issues are discusses and the conclusion and the recommendation become morally binding to the Parties.

Among the important conclusions arrived at so far, mention can be made to the recommendations on the workers participation in Management, Model Grievance procedure, code of discipline in Industry, Criteria for recognition of Trade Union etc,

3.4 Joint Management Councils.Arising in the Indian Labour Conference 1957 was the

recommendations for the formation of JMC’s in Industrial undertaking . The idea underlined the formation of JMS was it give the workers a sense of participation on the voluntary basis and the associate the labour for higher productivity, affording the workers an opportunity to express themselves and to make then appreciate their role for better industrial relations. Accordingly a scheme of JMS was introduce in 1958. In such councils, it was envisaged that matter of mutual interest may be discussed between the representatives of employers and the workers who will be

equally represented. The matter, which should be excluded form, such discussion are those relating to wages, bonus etc.

JMS, however, did not succeed because of various reasons among which it may be mentioned that the workers did not appreciate of understand their roles in the council appreciate of understand their roles in the council. There was either a good degree off apathy and lack of interest on one hand and on the other hand there was challenge to management prerogatives and functions from worker’s representatives. The reason ascribed by the labour for the functioning of the J.MCS are tha5t there was an unwillingness on the part of Management to share information as well as to go for genuine consultation. The experiments however, have been carried out in many of the public sector undertakings like Hindustan Machine Tools and NCDC etc. In places where JMCs have functioned successfully, it has been observed that productivity has increased, the labour forces have been established, a reduction in waste and by and large, better industrial relation prevailed.

“ACCORDING TO Indian Labour Year Book of 1968, JMCS functioning in 89 establishments- 34 in the scheme till the beginning of 1969.”3.5 Grievance Procedure.

Since grievances on the plant level are one of the sources which can affect harmonious industrial relations, it was considered necessary in one of the Indian Labour conferences to lay-down a system of grievance procedure by speedy settlement of grievances. Accordingly model grievance procedures were evolved and these have been adopted by a number of industrial undertakings in settling the grievances of the employees.

3.6 Joint Consultation The process of joint consultation is an essential requirement for harmonious industrial relations in industry as well as in the individual industrial undertakings. The machinery set-up for consultation between the management labour and the Government standing Labour committee, wages Boards etc. are come of the other committees of tripartite character, At the plant level, the works committee and JMCS are machinery for joint consultation. The role of these bodies have been discusses earlier.

Wage boards have been created as a tripartite body with representatives of the management, labour and Govt.and theater function had been the fixation of wages on an industry-wise basis. Wage boards have been set – up in many industries such as engineering. Plantation, Chemicals, iron and steel, coal mining etc. Many of them have submitted their recommendation industry-wise wage scales, but unfortunately in many cases there had been a delay in the implementation of the

recommendation of the wage Boards. Wage boards, however, have also been criticized for the time taken by them in recommendation of wage scales. One of the major difficulties in respect of the recommendations of the wage boards was that their adoption was not obligatory and as a result of which there arose a number of disputes in respect of their implementation. There is a thinking now to make these recommendations obligatory.

3.7 Voluntary Arbitration.It has been mentioned earlier that in the event of an

industrial dispute, which could nor be settled through the process of conciliation the industrial Disuses act provides for the compulsory adjudication i.e the parties involved in the disputes are forced to go to a labour court of a Tribunal. Lateran, a provision has been introduced in the industrial Disputes Act for arbitration . This makes that between the time when a fuller report is given by the conciliation machinery to the Government and the time it is deferred to the adjudication machinery, the parties by joint agreement can go for voluntary arbitration. Voluntary Arbitration makes that bot the parties agree to have their disputes resolved by an arbitrator mutually agreed upon shoes decision they are agreeable by. In other words, arbitration offers the opportunity for a voluntary solution of the disputes. The process of arbitration, therefore, can save expenditure and time for both the parties. Arbitration in this country unfortunately has not gained much ground, mainly because of two reasons. One is that there is no appeal against the arbitration’s award and the other is dearth of suitable persons to act as arbitrators. In the case of adjudication both the parties have the opportunity fo0r appeal to the higher counts if the award is not favorable to them and can even go up to the Supreme Court. This is one of the reasons which arbitration has not found favour in the country.

In the western countries, arbitrators can be selected from the panels maintained with considerable experience in the industry in which the dispute arises. The position is not similar here. From the point of vies of the industrial Relations, an arbitrator’s award is often more satisfactory than an adjudication award, since both the parties agree to go for arbitration. However, the success of voluntary arbitration would very much depend on the state of relationship between the parties. 3.8 Collective Bargaining.

Collective Bargaining is an important feature in industrial Relations . The main meaning of collecting Bargaining is that management and the labour directly negotiate the terms and conditions of employment of other related issues and in that process backing with each other and arrive at mutually acceptable agreements for a period time. There can be collective bargaining both for an industrial unit of an industry.

The merits of collecting bargaining lies on the fact that since agreements are arrived at through mutual voluntary negotiations, the parties are bound by honor to above by such agreements. The success of collective bargaining, however, depends on the following important factors:-There must be an acceptable and recognized bargaining agent. That means that there must be recognized union or union to negotiate the terms and conditions of the agreement with the management.The attitude of the management and the union towards each other. Unless there is a sense of mutual trust and confidence, collective bargaining is unlikely to work.Respecting the rights of the unions and the prerogatives at the management by both the parties .Skill of the negotiators in collective bargaining.Collective bargaining is the best means by which harmonious industrial relations can be achieved both at the plant and industry level. As has been mentioned d\earlier that through the process of collective bargaining, collective agreements are arrived at either for a period of time in the case of a short term agreement which can be for one year of for long term agreements which can be for the period between 3 to 5 years. Such agreements contain specific terms and conditions which are arrived at through the process of collective bargaining.

It is understood by the parties that during the period the operation of the agreement neither of the parties will bring up issues which are likely of collective bargaining adjudication is avoided and it stabiles industrial peace.

3.9 National Commission on Labour . National commission on labour was appointed in the year 1966 to

investigate into the various aspects of labour problems. The commission which submitted its final report on the basis of the studies carried out on specific subject and labour problems of industries, made important recommendations in respect of industrial relations. The commission recommended the formation of industrial Relations commission to deal with conciliation and adjudication of industrial disputes such commissions have been recommended to be formed at the center and a well as in the states. The commission to be formed at the center will be a National commission , which deal with all disputes of national importance.

3.10 Worker’s Participation in Management. Some countries have used voluntarily while some have been forced by law. All these mean to increase production and productivity. This is also a new to India. Mahatma Gandhi has accepted both labour and capital as member of the same family. He liked to establish with village democracy and industrial democracy. International Labour conference 13th session

considered democracy. Labour Minister of France accepting accepting the proposal said, “Labour cooperation can be had only when their honour is safe.” Participation means co- functioning, playing one’s part in an integrative unity contributing all that one is capable of to the good of the organization. Participation rests on two foundation stones- co- ordination and understanding. We need openers and explicitness in discussion. It is a mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals of objectives and share responsibilities. Workers Participation in management encourages workers to accept responsibility, change, better decisions, team etc. Because industry is now considered as a social institution. The management employees and the community have the equal interests in the survival and prosperity of industry.

It is naturally opposed to the master servant relationship as well as to labour legislation. Between labour and management. It needs maximum cooperation. Decision are taken by employers and employees, the two main parties as equal co- eperat partners.

From of participative management.➢ Employee Directors.➢ Suggestion Progremme of plans.➢ Multiple Management (Committee System)➢ Labour Management Cooperation.➢ Democratize supervision of Management.➢ Consultative supervision or Management➢ Worker’s Associaition.➢ Joint Consultative committee➢ Co-partnership.➢ Bipartite Associations.

So the idea of labour partnership in management is an important idea as it is an essential step to improve labour relations. By participation in management, workers become a part of management, thus they do not give birth to labour dispute without any reason. All labour problems are solved mutually.

1. Effects of Best Industrial Relations.

➢ Growth in worked’s unity. ➢ Improvement in working conditions.➢ Improvement in wages.➢ Progress of labour unions. ➢ Enactment of labour laws.➢ Improvement in industrialists treatment.

➢ Increase the morale of the workers.➢ Increase the production.➢ Improves the quality.➢ Improves the efficiency of the workman.➢ New development schemes are promoted.➢ Reduces per unit production cost.➢ Workers get job satisfaction.➢ It gives a place of honour to workers.➢ Problem is solved by mutual consent.➢ It develops many incentives schemes.➢ It reduces accidents.➢ It reduces strikes ]➢ Estalblishment of industrial democracy.➢ Lack of external control ➢ Increase In worabillty of workers.➢ End of industrial struggles.➢ Increase in mutual good feeling.➢ It reduces absentism.➢ Growth of collective bargaining.➢ It creats motivation.

1. conclusion .It will be evident that the problems of industrial relations in the country have been approached in which compulsive measures have been emphasised on onehand and on the other the voluntary approach has been encouraged. Over dependence on legislative measures has been severely criticised on the ground that such measure tend to take away the initiative from both the parties to forge their relationship on the basis of mutual understanding and respect. Too much protection or having disputes resolved through adjudication mostly to do satisfy parties. From that point of view legislative measures do not really encourage harmonious industrial relations which can have a lasting value. Further,it,tends to inhibit the growth of collective bargaining so necessary for healthy growth of industrial relations. It may, therefore, require some re-thinking on the part of the state to determine how for further legislations should be introduced to regulate industrial relations in the country. Development of collective bargaining and acceptance of joint consultation as the means for promoting better industrial relations in the country. Development of collective bargaining and acceptance of joint consultations as the means for promoting better industrial relations, should get greater consideration than had been given hitherto. Though there are many obstacles in the process still they are the means though which more lasting industrial peace is likely

to come. Therefore, wherever possible, collective bargaining in its true sense should be encouraged to develop both at the plant and industry level.

INTRODUCTIONTO

WELFARE

MEANING OF WELFARE

Industrial progress depends on a satisfied labour force and in this connection the importance of Labour welfare measures were accepted as early as 1931, when the royal commission on Labour stated, the benefits, which go under these nomenclature are of great importance to the worker and which he is unable to secure by himself. The Schemes of Labour Welfare may be regarded as a ‘Wise Investment’ which should and usually doing bring a profitable return in the form greater efficiency.

The encyclopedia of social science has defined Labour welfare work as, the voluntary efforts of the employer to establish, within the existing Industrial system, working and sometimes living and cultural conditions of the Employers beyond what is required by Law, the custom of the country and the condition of the Market.

In the broader sense, if any include not only the minimum standard of hygiene and safety laid down in general Labour legislation, but also such as aspects of working life as Social Insurance schemes, measures for the protections of women and young worker, Limitation of hours of work, paid vacation etc. In narrow sense welfare in addition to general Physical working conditions, is mainly concerned with the day-to-day problems of the workers and the social relationship at place of work.

Welfare is the work, which is usually undertaken within the premises or in the vicinity of undertaking for the benefit of employee and the members of his family.

The purpose of providing welfare amenities is to bring about development of the whole personality of the worker is social, psychological, economic, moral, cultural and intellectual development to make him a good worker a good citizen and a good member of the family.

THE CONCEPT OF WELFARE

The concept of welfare means some amenities, other than the monetary benefits which are required to be provided to the workers by their employers. Such measures are required to maintain the standard of living of the workers to some extent. The central and the state government have made rules for the safety and welfare facilities for the workers. In this context so many Acts have been enacted under which certain provisions are statutorily required from the employers. These different Acts have covered almost all categories of workers. These Acts are as under: -

➢ FACTORIES ACT, 1948

➢ MINES ACT, 1952

➢ LABOUR PLANTATION ACT, 1951

➢ MOTOR TRANSPORT WORKERS ACT, 1961

➢ CONTRACT LABOUR REGULATION & ABOLITION ACT,

1970

➢ INTER STATE MIGRANT WORKERS ACT, 1979

All these acts provide some amenities, which are statutory required. But in practical viewpoint, it is the need of the time that there should be one piece of legislation which can protect the interest of almost all the workers. The introduction of all the provisions of these Acts is not satisfactory. Effective arrangements should be made for the introduction of all these Acts. Special staff should be recruited and maintained to watch the irregularities in the factories and establishments and to award suitable punishments to the defaulters.

WELFARE MEASURES GIVEN IN FACTORIES ACT-1948

Factories act provides some measures for welfare of employees. Each and every organization covered under the Factory Act-1948 has to apply these measures. These provisions are given in chapter (5) of the Act. These can be enumerated as Follows: -

Following Provisions relate to the measures to be taken for the Welfare of Workers.

1. WASHING FACILITY (Sec-42): -

Section 42 provides that every factory should provide and maintain adequate and suitable washing facilities for its workers. For the use of male and female - such Facilities should be separate and adequately screened. Such facilities should be conveniently accessible for all workers and be kept in the state of Cleanliness. The state Government is empowered to make rules prescribing standards of adequate and suitable washing facility.

2. FACILITIES FOR STORING AND DRYINGCLOTHING (Sec-43): -

Section-43 empowers the state government in respect of any factory or class or description of factories to make rules requiring the provisions, their in of (i) suitable places for keeping clothing not worn during working hours, and (ii) for drying of wet clothing.

3. FACILITIES FOR SITTING (Sec –44): -

There are certain operations, which are performed by the workers only in a standing position. This not only affects the health of a worker but his efficiency also. According to section 44(1), every factory shall provide and maintain suitable facilities for sitting, for those who work in the standing position so that they may take advantage of any opportunity for rest, which may occur in the course of their work.

4. FIRST-AID APPLIANCES (Sec 45): -

The following arrangement should be made in every factory in respect of first-aid facilities.

a) Provision of at least first-aid box or cupboard, subject to following conditions, for every 150 workers ordinarily employed at any one time in the factory.

b) It should be equipped with prescribed contents and nothing else should be stored in it.

c) It should be personally maintained and readily accessible during all working hours.

d) A responsible person who holds a certificate in first-aid treatment, recognized by the state government should be made the in-charge of first -aid box or cupboard. Such a person should be readily available during working hours of the factory. Where there are different shifts in the factory, a separate person may be appointed for each shift, provided he is responsible person and trained in

first- aid treatment.

e) Where more then 500 workers are ordinarily employed in a factory, an ambulance should be provided and maintained by every such

factory. Such room should be of prescribed size containing prescribed equipments and is in the charge of such medical and nursing staff as may be prescribed.

5. CANTEENS (Sec-46): -

a) The state government may make rules requiring that in any specified factory where more than 250 workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the occupier for the use of workers.

b) Such rule may relate to any of the following matter: -

(i) The data by which canteen shall be provided.

(ii) The standard in respect of construction, accommodation, furniture and other equipment of the canteen.

(iii) The foodstuff to be served and the price to be charged.

(iv) The item of expenditure in the running of the canteen, which are not to be taken into account in fixing in the cost of foodstuffs and which shall be born by the employer.

(v) The constitution of a managing committee for the canteen and representation of thes workers in the management of the canteen.

(vi) The delegation, to the Chief inspector, subject to such conditions as may be prescribed, of the power to make rules under clause (iii).

6. SHELTERS, REST ROOMS AND LUNCH ROOMS (Sec-47): -

The provision of some sort of shelter is must, where the workers can take their meals brought by them during rest interval. The following provisions have been made in this respect:

(i) In every factory where more then 150 workers are ordinarily employed, the occupier should make adequate

and suitable arrangement for shelters or rest rooms and lunch room with provision of drinking water where the workers can take rest or eat meals brought by them.

(ii) Such places should be equipped with the facility of drinking water.

(iii) Such places should be sufficiently lightened, ventilated and kept in cool and clean conditions.

(iv) The construction and accommodation, furniture and equipment of such places should confirm the standards, if any, laid down by the state government. By a notification in the official gazette, the state government may accept any factory from the compliance of these provisions.

7. CRECHES (Sec -48): -

Following provisions have been made in respect of crèches in the factories: -

(i) In every factory where there are more than 30 women workers ordinarily employed, the facility of suitable room or rooms should be provided and maintained for the use of children under the age of six years of such women.

(ii) There should be adequate accommodation in such rooms

(iii) This place should be sufficiently lightened and ventilated and kept in clean and sanitary conditions.

(iv) Women trained in the case of children and infants should be made in-charge of such rooms.

8. WELFARE OFFICERS (Sec-49): -

In every factory where in 500 or more workers are ordinarily employed, the occupier should employ such number or welfare officers as may be prescribed. The state government is empowered to prescribe the duties, qualification and conditions of service of such welfare officers. The provisions of section -49 also applied to seasonal factories like sugar factories etc.

9. POWER TO MAKE RULES (Sec-50): -

The state Government is empowered to make rules exempting and factory or class or description of factories from the compliance of provisions of this chapter, provided after native arrangements for workers welfare have been made to the satisfaction of the authorities. Such rules may require that workers representative shall be associated with the management of the welfare arrangement of the workers.

CLASSIFICATION OF WELFARE MEASURES

Welfare work may be classified in various ways: -Firstly, it may be classified into the following three categories:

Statutory Welfare Work: Some welfare work may be distinguished from the categories in that, it comprise of those provisions of welfare work whose observance is binding on employers under various enactments.

Voluntary Welfare Work: this category includes all those activities conducive to the welfare of the workers, which are undertaken by the employers themselves of their own free will. Some social organizations also undertake this type of work.

Mutual Welfare Work: it means a corporate enterprise of the workers with a view to make improvement in their lot. Activities of the trade unions, which are conducive to the welfare of their members, are included in this category.

Further welfare measures may be classified into two categories:

Welfare Work inside the factory: this is the intra – mural welfare work including various facilities and amenities provided to the workers inside the factory e.g. provision of drinking water, cleanliness and sanitation, canteens, crèches, medical facilities, first aid appliances etc.

Welfare Work outside the factory: This is called extra- mural welfare

work including the provisions of facilities outside the factory e.g. provision of educational and recreational facilities, amusements, games and sports, housing and medical facilities, transport, etc.

SCOPE OF EMPLOYEES WELFARE

According to the committee on employees welfare, welfare services should mean such services, facilities and amenities as adequate canteens, rest and recreation facilities, sanitary and medical facilities, arrangements for travel to and from the accommodation of workers employed at a distance from their homes and such other services, amenities and facilities including social security measures, which contribute to conditions under which workers are employed.

Employee welfare includes both Statutory as well as non-statutory activities undertaken by any of the three Agencies: -

➢ Employers

➢ Trade Union

➢ Government for the physical and mental development of workers.

SIGNIFICANCE OF EMPLOYEE WELFARE

The logic behind providing welfare facilities is to create efficient, healthy loyal and satisfied Labour force for the organization and also for the nation. In India, industrial workers get the benefit of various welfare facilities. The purpose is to provide them better life and also to make them happy and efficient. The other equally important purpose is to raise their productivity

EMPLOYEES WEFARE AT NFL ,PANIPAT

The Company is very conscious of the Welfare of its Employees. It provides a number of facilities to the employees at all the unit.

➢ At PANIPAT UNIT, there is a Modern Township, which is spread over an Area of 100 acres. There are 900 Dwellings in Township.

➢ Company has provided 30-Bed HOSPITAL in Heart of Township. Hospital is equipped with necessary Facilities like X-Ray, Clinical laboratory, operation theatre, E.C.G, Respiratory Equipment etc.

➢ Management Provides Canteen Facility to its Employees in Factory.

➢ Playground for all Outdoor games.

➢ A Community Hall to sit 600 Persons.

➢ School (Kendriya Vidyalaya)

➢ Shopping Center

➢ Members Club

➢ Bank and Post-Office.

➢ Facility of ATM in NFL Township.

WELFARE SCHEMES

AIMS AND OBJECTIVES OF WELFARE SCHEMES

The aim and objectives of welfare schemes are as follows: -

➢ It is good since it enables the workers to enjoy a richer and fuller life by providing them those amenities and conveniences of life, which they themselves cannot provide.

➢ It is partly economic since it improves the efficiency of labour, increases its availability where it is scarce or help to secure better class of workers by keeping them contended, it minimizes the chance of any industrial disharmony and establishes industrial peace.

➢ It develops a sense of responsibility and dignity among the workers and then makes them noble and civilized citizens.

➢ It also keeps the efficiency and morale of workers high which creates a sense of honesty and integrity among workers.

➢ Subsequent effect of all the above aims establishes a good labour management relation, which is essential for the smooth functioning of the industry.

➢ It also encourages worker’s participation in management through suggestions received from the workers.

WELFARE SCHEMES

STATUTORY NON STATUTORY

MOMOTI

MOTIVATIONAL OTHERS

ProvidentFund

DLISDeath linkedInsuranceScheme

PensionScheme

Gratuity

(GPAI)Group

PersonnelAccidentInsurance Scheme

NFL Social SecurityScheme

GSLIGroup Saving

Linked Insurance

Family Welfare

BenevolentScheme

Incentive for promoting small

family norms

Production Incentive

Higher Edu.Scheme forEmployees.

Promotion policy

Training&

Development

Loan & Advances

Township FacilitiesMedical,Shopping center,Education-al facility etc.

Canteen

STATUTORY WELFARESCHEMES

PROVIDENT FUND SCHEME

Every employee of the company including trainees (except Apprentices engaged under the Apprentices Act and Govt. servants on loan on foreign service terms) any person employed by or through contractors in connection with the work of the company, shall be entitled and required to become member of the fund from the date of appointment. The rate of contribution is equal to 12% of the salary with matching contribution from employer side. On the accumulated amount 8.5% interest is given.

The employees are allowed refundable/non-refundable loans to meet contingencies such as higher education for children, marriage of children/near relatives, house construction and to meet other social obligations etc. subject to the condition to be met as provided in P.F rules.

EMPLOYEES PENSION SCHEME 1995

All the employees who were the members of Family Pension Fund 1971 including new entrants are covered under the employees Pension Scheme 1995 under the Employees Provident Fund and Misc. provisions Act, 1952. (as amended in 1996) which provides pension to the members on superannuating, retirement, disablement, family pension cover for widow/widower, children/orphans pension in addition to widow pension, pension to nominee in case of unmarried members or those having no family and provision of the capital return also exist on option. The rate of contribution towards EPS is @ 8.33 % of the pay and it is to be diverted from employer’s share of PF. In EPS there is a ceiling of 6,500/- on salary of all employees.

PENSION = Pensionable salary*Pensionable service /70

DEATH LINKED INSURANCE SCHEME

All employees who are the member of provident fund are covered under this scheme. Salient features of the scheme are as under: -

1. Each employee is covered for a uniform fixed amount which at present is Rs.1.25 lakh.

2. Upon the death of the member while in service, the sum assured is payable to the nominee.

3. The entire premium under the scheme is borne by the employer and the employee is not required to make any contribution towards premium payable to LIC.

4. Payment of insurance amount is exempted from tax.

GRATUITY

With effect from 24.5.94 all employees irrespective of their salary are covered under the Payment of Gratuity Act, 1972. As a result thereof, Death-cum-Retirement Gratuity Scheme no more remains in operation however, for the purpose of calculation of gratuity, employees or their nominees are at option to choose any set of benefits, either under the Payment of Gratuity Act, 1972or under the Death-cum-Retirement

Gratuity Scheme, which ever is more beneficial to them.The benefits available under the Act and the scheme are as under: -

PAYMENT OF GRATUITY ACT

RATE OF GRATUITY 15 days wages for every completed PAYABLE year of service or part thereof in excess

of 6 months By taking a month of 26days subject to

A max. of Rs.3.5 lakh.RATE OF GRATUITY INCASE OF DEATH Same as above

DEATH-CUM RETIREMENT GRATUITY SCHEME

RATE OF GRATUITYPAYABLE

1/4th of EPF. Monthly emoluments for eachcompleted 6 months of the qualifying service orPart there of subject to a max. of 16.1/2 timesmonthly emolument or Rs.3.5 lakh whichever is less by taking a month of 26 days.

RATE OF GRATUITY IN CASE OF DEATH

Death during the 1st year of qualifying service.

Death after the 1st year but before 5 yrs of qualifying service.

Death after completion of 5 yrs of qualifying service but before 20 yrs of qualifying service.

Death after 20 yrs of service or more.

2 monthsemolument

6 monthsemolument

12 monthsemolument

½month emolument

NON STATUTORY WELFARESCHEMES

NFL SOCIAL SECURITY SCHEME

OBJECTIVE OF THE SCHEME: -

To provide financial benefits to an employee /nominee of the deceased as the case may be in the event of death/permanent total disablement/ retirement on medical grounds.

ELIGIBILITY: -

All regular employees including company Trainees appointed against regular posts who died while in service or suffered permanent total disablement or retired on medical grounds, on or after the date of implementation of the scheme. The scheme w.e.f 11.12.1998.

BENEFITS UNDER THE SCHEME

Under this scheme the employee’s dependent family members shall be provided lump sum benefit equivalent to Basic pay+DA (restricted to Rs 15000/-pm) for 50%of the left over service limited to 60 months pay, whichever is less to be released in a phased manner. It is subject to tax deduction under the Income Tax Law. Minimum amount payable is Rs.1,00,000/-

RELEASE OF PAYMENTS

The payment under the scheme/ shall be released in a phased manner as indicated below:

1st year 40% of admissible amount

2nd year 20% of admissible amount

3rd year 20% of admissible amount

4th year 20% of admissible amount

CONDITIONS FOR BEING BENEFICIARY UNDER THE SCHEMEThe benefits shall not be extended in the following circumstances: -

i) Employee whose spouse is in the employment.

ii) Outstanding loans/advances and other dues, if any, taken by theEmployees from the company have not been repaid/settled.

iii) Company quarter, if allotted has not been vacated.

BENEVOLENT SCHEME

This Scheme was introduced in w.e.f 1st November 1994. In terms of the Benevolent Scheme, in the event of death of an employee of NFL under any circumstances during service, all employees of the company contribute an amount of Rs.25/- each from their salary and the total amount so collected is paid to the nominee of the deceased employee. There is however no contribution from the management side.

GROUP SAVING LINKED INSURANCE SCHEME

The Group Saving Linked Insurance Scheme (GSLI) of the LIC has been introduced in all units/office of the company providing coverage of insurance amount ranging from Rs.30,000 to Rs1.20 lakh in the event of death of an employee. The scheme provides for a monthly contribution @ 1% of the total sum insured. Out of which 35 % is appropriated towards risk for insurance cover and 65 % is credited to Saving Portion. The saving portion earns interest @ 11% P.A.

The contributions paid under the scheme are eligible for exemption under the Income Tax Act. 1961. The maturity proceeds or claimed amount are also free from Income Tax. The contributions are payable on monthly basis through deduction from employees salary.In the event of unfortunate death of a member covered under the scheme, the nominee becomes entitled for the life insurance benefit as applicable to the member’s category plus the amount accumulated with interest in the saving fund account of the member.

In case of survival up to the normal retirement date or early withdrawal by resignation or termination of the service, the total amount accumulated in the savings portion with interest lying to the credit of the member in the saving fund account becomes payable.

SPECIAL WELFARE FUND SCHEME

SCOPE: - The fund known as “NFL employee special welfare fund ’’ will cover all workers in the unionized categories.

AIMS AND OBJECTS: - The object of this fund is to undertake welfare projects in the neighborhood of the company’s office or for giving relief to the hard cases inside the establishment.

SUBSCRIPTION: -

The fund shall comprise of: -

Contribution of Rs.2/- per head.

Grant of Rs.1000 p.m by the management in case of each unit and Rs.500/- p.m each in case of marketing division and head office, provided it doesn’t exceed the matching contribution of the members.

ESTABLISHMENT OF THE COMMITTEE TO MANAGE THE FUND: -

For the purpose of administration of the fund, a committee of 6 persons shall be constituted in each unit and at central marketing office and head office of the company there will be a chairman of the committee who shall be the nominee of the management. The company shall provide the facility for the internal audit of the fund.

OPERATION OF THE FUND: -

The fund shall be utilized in the following way: -

For providing relief to the hard cases inside the establishment e.g. unforeseen calamities, misfortunes, prolonged illness of the employees

necessitating his/her absence on extra-ordinary leave without pay, on medical grounds.For undertaking the welfare projects in the neighborhood.

UTILISATION OF THE FUND BY THE COMPANY: -

The company has made road many times in Vikas Nagar which is the near by attachment to the NFL Township Panipat.NFL Panipat has also donated ceiling fans in Sanjay Gandhi Eye Hospital.NFL Panipat has also donated Fridge in Mother Teresa Charity Home etc.

INTER COMPANY DEATH BENEFIT SCHEME-DISCONTINUED IN e.f 1.04.02

In order to provide better security & to inculcate a sense of brotherhood amongst the employee of FCI-NFL group of companies in the event of death of any employee due to any reason during service, contribute an amount of Rs.1/- each from their salary & the total amount so collected is paid to the nominee of the deceased employee. The total amount under the scheme payable to the nominee works out to Rs.26500/- approximately.

The above scheme was introduced as a result of wages settlement signed with the recognized Union of FCI-NFL Group of Companies & was made applicable w.e.f 30.10.1983

FAMILY WELFARE SCHEME

Under this scheme every employee of the unit NFL Panipat contributes Rs.5/- each from their salary & the total amount so collected is paid to the nominee of the deceased employee.The total amount payable to the nominee works out to Rs.4500/- approximately.

GROUP PERSONAL ACCIDENTALINSURANCE

Under this scheme all the employees of NFL whether they may be workmen, trainees, apprentices, or on deputation all are covered. In this

scheme risk cover is for 24 hours. In case of temporary disablement 1% of capital sum insured per week is given subjected to maximum 104 weeks.

GPAI = percentage of loss*relevant factor

Slab(BP+DA) Usual cover forTemp. disablement

Death or Totaldisablement

Total (Rs.) Fatal

Up to 7850/- 1,00,000 4,25,000 5,25,0007851/- to 8910/- 1,30,000 4,25,000 5,55,0008911/- to 10300/-

1,60,000 4,25,000 5,85,000

10301/- to 12500/-

1,90,000 4,35,000 6,25,000

12501/- to above 2,80,000 3,85,000 6,25,000

MOTIVATIONAL SCHEMES

INCENTIVE SCHEME FOR PROMOTION OF SMALL FAMILY NORMS

CASH INCENTIVE

• Rs.500/- to those who have 2 or less children and they or their spouse undergo vasectomy / Tubectomy operation.

• Rs.250/- to those who have three children and they or their spouse undergo this operation.

• Rs.125/- to those who have more than 3 children and they or their spouse undergo this operation.

Reimbursement of all medical expenses incurred in connection with sterilization operation on production of requisite certificate and money receipts from any organized Hospital.

SPECIAL CASUAL LEAVE

a) Special casual leave not exceeding 6 working days to male employees who undergo sterilization operation (Vasectomy). Sunday & weekly offs falling in between the special casual leave are ignored.

b) Special casual leave not exceeding 14 working days to female who undergo non- puerperal tubectomy operation.

SPECIAL INCREMENT

The employee who themselves or their spouse undergo sterilization operation after having three or less serving children shall be granted a special increment in the form of special pay not to be absorbed in future increase in pay either in same post or on promotion to higher post. The increment would be allowed from the first of the month following the date of sterilization.

EMPLOYEE DEVELOPMENT SCHEME

In welfare schemes, training and development programs for employees is also included. These programs are done to make employees more efficient.Incentive admissible to the employees on acquiring higher qualifications while in service of the company:-

S no.

Existingqualification

Eligibility criteria for increments

No. of advance increments

Eligible Categories

a) TECHNICAL1) Non Matric or

Metric with ITI

Matric/Pre basic 1 Up to the scale of Rs.5550-8910

2) Matric/Pre basic

Basic course/ITI 1 Up to the scale of Rs.5550-8910

3) Matric+ITI/ ISC/basic course

B.Sc./Diploma in engineering/Adv. course

1 Up to the scale of Rs.6550-11350

4) B.Sc./Diploma in engineering/ advance course

AMIE,AMI,Chem. Engg/AIC/Post graduate diploma in Prod/Project Mgt. of two years duration Awarded by the StatutoryUniv /Institutions

2 Up to the scale ofRs.10750-16750

5) Engg. Graduates

M.Tech/MBA/P.G. DIP. in Project Mgt.awarded by StatutoryUniv/ Institutions

2 Up to the scale ofRs.10750-16750

b) NON TECHNICAL

1) Non Matric Matric /Pre basic 1 Below the scale of Rs.4650-6550

2) Matric/Pre basic /Basic/B.A part 1 Inter

Graduate/B.Com 2 Up to the scale of Rs.6100-9710

3) Graduate/ B.Com

a)Master Degree M.A(pub Add)

s2 Up to the scale of Rs.10750-16750

b)M.A(economic) 2 Up to the scale of Rs.10750-16750

c) L.L.B 2 Up to the scale of

Rs.10750-16750d)M.Com/Business Admn.)

2 Up to the scale of Rs.10750-16750

e)M.Com/M.Com (Acc& Business static/C.A/ICWA/ Company Secretary

2 Up to the scale of Rs.10750-16750

f)M.B.A with Sr.liasonin Financial Mgmt.

2 Up to the scale of Rs.10750-16750

4) DIPLOMA a) P.G Diploma in pers. Mgt. & Ind. Relationb) P.G diploma in Officer Org. & procedures.c) P G Diploma in material mgt.d) P.G Diploma inJournalism/Diploma in Public Relatione) P.G Diploma in Marketing & Sales Mgt.

1

1

1

1

1

In case of employee up to the scale of Rs.6550-11300.Non technical side adv. Increment would be given only if they acquire any of these qualification which could become functional relevant to them as & when they start working.

5) Post graduate Ph.D 2 Up to the scale ofRs.10750-16750

6) MBBS/BDS 1 Diploma in medicineSurgery.2 Masters Degree inMedicine surgery.

2 Up to the scale of Rs.10750-16750

OTHER WELFARE SCHEMES

SCHOLARSHIP TO THE MERITORIOUSCHILDREN OF NFL EMPLOYEES

The salient features of the said scheme are as under:-

Children of NFL employees studying in schools who secure the first three position in Annual Examination out of the first five (for SC/ST, the first three position among SC/ST student) in the classes mentioned against each in the next class tenable for one year provided they continue their studies

in the next class:

Children of employee who secure first & second position in Board / University examination would be awarded as under:

Position Board examination University examinationX XII Graduate Postgraduate

1. Rs.3000/- Rs.3000/- Rs.4000/- Rs.4000/-2. Rs.2500/- Rs.2500/- Rs.3000/- Rs.3000/-

WELFARE EXCURSION SCHEME

A) Two Excursion Trips in a calendar year are arranged by the Club at Unit. However at Mktg. division & Corporate Office where there are no clubs, such excursion trips are arranged by the concerned welfare/industrial relations department. Under the scheme, the places to be visited during such Excursion trips are arranged within a distance of 400 km each way from the township/place of work. One night stay is also allowed for the said trip. However company does not bear any extra expenses on account of fooding or lodging. The employees make their own arrangement for night stay and avail their own leave.

B) Management provide hire charges for two buses trip at Unit & total three buses for two trips at C.O & CMO.

Class Amount of scholarshipI to IV Rs.35/-V to IX Rs.60/-X to XI Rs.100/-

C) A sum of Rs.25/- per member per year is also given to the respective clubs & where there are no clubs the amount @ Rs25/- per employee availing the facility is placed at such trips. All other expenses on such trips are however met through the contribution of employees availing this facility.

LONG SERVICE AWARD SCHEME

In terms of company’s policy regarding grant of long service award, employees are given an award on completing specified length of service of 10/15/20/25/30 & 35year as per details given below:

Sr. no. No. of year of service in Co. Amount of award

1) On completion of 10 years Rs.900/-2) On completion of 15 years Rs.1150/-3) On completion of 20 years Rs1250/-4) On completion of 25 years Rs.1500/-5) On completion of 30 years Rs.1800/-6) On completion of 35 years Rs.2200/-

The above amount is credited to the Optional Provident Fund Amount of the concerned individual.

BLOOD DONATION CAMPS

NFL time to time organizes Blood Donation Camps & Free Medical Camp to help the society. In the Free Medical Camp NFL provides transport facilities to the patient from nearby villages. Consultation, clinical test & medicines are also provided free of cost.NFL also organizes Baisakhi Mela & Diwali Mela for the welfare of the society. From the income of mela, it helps the needy & poor.

WELFARE AND SPORTS FACILITIES

Following grant/facilities are provided:-

Sports Grant-Under this head, budget allocations are made for the following:-

1) Annual Sport/Welfare grant.2) Grants for holding inter – unit Tournaments.3) Sponsored Tournament.

Given below are break up of grants for sport activities:-

Unit Annual Grant Budget For Inter Sponsored TA/DA For Sports Unit Tournament Tournament Major Minor Games Games

Nangal 80,000/- __ __ 25,000/- 30,000/-

Vijaypur 60,000/- __ __ 25,000/- 60,000/-

Bhatinda 60,000/- __ __ 25,000/- 30,000/-/Panipat

CO/CMO 30,000/- __ __ Actual be complied by Taking into account no.All units 35,000/- 15,000/- of games, no. of players/Offices deputed etc.

SELF INSURANCE OF OUTSTANDING HOUSE BUILDING ADVANCE

A self insurance scheme for the purpose of providing insurance cover for outstanding HBA & interest due thereon is in vague in the company within the following parameters:-

a)Employee who have taken HBA from the company contribute Rs.2/- per one thousand per annum w.e.f 1.4.2000 on the amount of HBA outstanding and interest due thereon in her/his name as on 1 April of each financial year, which is recoverable in 12 equal monthly installments from the salary of employee.

b) The fund so generated is utilized to meet the liability of deceased employee towards repayment of HBA & interest accrued thereon.

c)For matching contribution on behalf of company necessary accounting adjustment are carried out at Corporate Office at the time of death of an employee with regard to the outstanding amount of HBA along with interest thereon by debiting Company’s share to the respective unit office.d) The fund is managed by a governing body comprising of representative there of Management Officer’s Association & recognized unions.e) The said scheme was introduced in the company w.e.f.1/4/1992

Relief Measure/Benefits admissible in case of Death/Total Disablement & Retirement on Superannuation , Premature Retirement

Benefit underthe scheme

On superannuation

On premature Retirement

On natural death while in service

On death/totalDisablement due to accident

Provident Fund

Full employees & employer’scontribution

Full employees& employer’scontribution

Full employees& employer’scontribution

Full employees& employer’scontribution

Gratuity As per Act Same as onSuperannuationCum retirement

Same as on SuperannuationOr death gratuityScheme which ever is more

Same as on SuperannuationOr death gratuityScheme which ever is more

Pension As per the provision of EPS 1995

As per the provision of EPS 1995

As per the provision of EPS 1995

As per the provision of EPS 1995

Group personal acc. insurance

Nil Nil Nil As per group Personal acc.Insurance scheme

Group insurance scheme of LIC in lieu of DLIS

Nil Nil One time benefitPayable to the nominee

Same as in the case of natural death

Inter Cos. Death benefit scheme

Nil Nil AmountEquivalent to total no. of employees in FCI-NFL group Of cos. @ Rs.1

Same as in the case of natural death

Payable to the nominee

Benevolent scheme of NFL

Nil Nil An amount equivalent toContribution @ Rs.5/- peremployee of NFL

Same as in the case of natural death

Group saving linked insurancescheme

65% of the total contribution of the employees + interest

Same as in the case of superannuation

The sum insured + 65% of employees contribution

Same as on natural death

Self insuranceOf outstandingamount of HBA

Nil Nil The liability of deceased employee toward HBA taken from the co. & interest thereon is met out of the accumulation in the self ins. fund

Same as on natural death

EL/HPLencashment

Subject to the Condition that encashment of EL & HPL together shall not pay full of Which HPL component would not exceed 120 dayFull pay

Same as on superannuation

Same as on superannuation

Same as onsuperannuation

Traveling allowance

For self & family as per T.A rules forHome town

Same as onsuperannuation

Concession availableTo family members As per T.A rules for home town

Same as on natural death

RELEIF MEASURE TO THE FAMILIES OF THE DECEASED EMPLOYEE IN CASE OF DEATH /

PERMANENT TOTAL DISABLEMENT WHILE IN SERVICE

a) In the event of death of an employee at any place other than at the plant while on duty, the company will arrange for the transportation of the body.

b) An amount of Rs.2500/- shall be payable to the family of the deceased employee as Funeral Expenses

c) All dues will be paid nearly within 15 days from the date of death of the employee.

TOWNSHIP

At Panipat unit, there is a modern township, which spreads over an area of 100 acres. There are 900 dwellings in the township, which accommodate officers, workers. Company also gives liberal house building advance at nominal interest to the employees to construct their own houses.

Medical facility

Self & spouseTo the extent Available in Co’s hospital on payment of Prescribed subscription

Nil To the extent available in comp. hospital for the dependent family members of the deceased employee during the period of Retention of comp.Accommodation by such dependents Subject to a max. of Six month from the date of death.

Same as on natural death

HOSPITAL

Company has provided a 30-bed hospital in the heart of the township. Hospital is equipped with necessary facilities like, X-Ray, clinical laboratory, operation theater, ECG, respiratory equipment etc. The first aid center is located within the factory premises with an ambulance kept in readiness. Medical facility is extended to all the employees and their dependents. If required, patients are sent to the approved outside hospitals and nursing homes for specialist treatment.

MEDICAL FACILITY

IN FAMILY FOLLOWING ARE INCLUDED: -

Family mean’s Husband or Wife as the case may be parents, children’s step children &children taken as wards, subject to the following conditions: -

Son: - till he starts earning or attains the age of 25 years.

Daughter: - till she starts earning or gets married, whichever is earlier.

The income limit of Rs. 1500 p.m for dependents would be inclusive of income from all sources including pension and pension equivalent of DCRG benefits and exclusive of the relief on pension sanctioned after Dec 1995.

There are following medical facilities are provided: -

➢ INDOOR TREATMENT FACILITY.

➢ OUTDOOR TREATMENT FACILITY.

INDOOR TREATMENT FACILITY: -

Reimbursement towards Indoor Treatment will be restricted as under:

• For self, spouse and dependent children – 100%• For parents - 80%

OUT DOOR TREATMENT FACILITY: -

Maximum ceiling limit for a financial year on OPD Treatment: - 1.5-month salary.Reimbursement procedure: -

• 100% reimbursement will be made up to one-month salary.

• 50% reimbursement will be allowed in case the expenditure on account of OPD treatment exceeds one-month salary and is up to 2-month salary.

• No reimbursement will be allowed towards OPD treatment in case the amount exceeds 2-month salary.

PERIODICAL HEALTH CHECK UP

The appointment to any regular post in the company is subjected to medical fitness. All employees working in the unit are required to undergo medical checkup annually from the company’s hospital.

CANTEEN

Management provides canteen facility to its employees in the factory. Eatables are supplied to them at the place of work at regular intervals. Hygienic conditions are also maintained in all the canteen services.

The canteen is very neat and clean. It is being cleaned regularly 2 times a day and also washed with detergent once in a week. In canteen proper ventilation and light is provided. Canteen has a sitting capacity of 80 persons at a time. Ten fans, five desert coolers and one water cooler are provided for hot summers. Telephone facility is also given. There is a notice board and complaint book is also available.

Canteen runs on contract basis for which tenders are invited. A security of Rs.95000/- is to be deposited in the starting.

NFL canteen

RECREATION CENTERS

Company has provided recreation centers for employees and officers these are:

➢ FERTILIZERS CLUB

➢ MANORANJAN KENDRA

These two recreation centers are situated with in the township. Various activities & competitions are organized at these places. These are very useful for the overall development of the employees. By participating in various kinds of activities the employees feel refreshed and energetic. There are two playgrounds also for all out door games.

LOAN AND ADVANCES

All the regular and confirmed employees of the company are eligible for taking following loans and advances: -

➢ Payment of salary advance

➢ Advance for purchase of conveyance

➢ Advance for initial setting up of household

➢ House building advance loan etc.

COMMUNITY HALL

Company has a community hall in township for conferences, meetings, marriages and other parties. 700 persons can gather there at a time. In community hall there is a stage which has a very good sitting capacity.Management organizes various activities & programmes in this hall. Various cultural programmes of school are also organized in this hall.

EDUCATION FACILITY

Company has provided a school KENDRIYA VIDYALAYA which is up to 12th standard. The studies in the school are really very good. In this school ward of both workmen and officer study together.

SHOPPING CENTREShopping center is also located in the township. There are many shops in the shopping center. All things of daily use are available at shopping center. Good quality product are provided here at reasonable rates. As township is situated 4 km away from the city, services of shopping center pay much. It is a useful concept for employee welfare

POST OFFICEOne Post office is also situated in the township. One need not to go to city for letters,parcels or money orders.ATM service is also available in the township. Now it’s very easy for the employees to withdraw money at any time.

EVALUATIONOf

SCHEMES

IMPORTANT BENEFITS OF WELFARE SCHEMES

An employee devotes his one fourth of life in the work place. Therefore it is the social and moral duty of the employer to provide him proper atmosphere and facilities. These facilities gives economic benefits too because these efforts increase productivity and moral of the employees. After studying all welfare schemes of NFL Panipat, here is summary of benefit of these schemes: -

HIGHER PRODUCTIVITY

The employees in NFL Panipat are highly productive. The employees are highly productive because they are satisfied with the welfare benefits. The company is wining the trust of employees by providing welfare measures. As a result the employees feel that company is doing its duty, now it’s there duty to work efficiently and by doing this there efficiency will increase.

INDUSTRIAL PEACE

There is a high degree of industrial peace in the unit. By adopting various welfare measures by the company there is job satisfaction among employees that increases peace in industry and no dispute arises.

MINIMUM LABOUR TURNOVER

Due to welfare activities in the factory and in the township the employees are satisfied. Working conditions in the factory are also very good. Various committees are there in the factory for listening to the employee’s problem. If the problem is serious proper action is taken immediately as a result the employees feel satisfied and the tendency of labour turnover is reduced.

LOWER ABSENTEEISM

Good working condition reduces the absenteeism. The working conditions in the unit are really very good & all the facilities are

provided to the employees as a result they are totally satisfied which lowers the absenteeism.

SATIESFIED WORK FORCE

If welfare measures are proper the workers feel satisfied. In Panipat unit there is proper participation by the workers in management decisions. As a result the employees feel themselves as an important part of the management and this creates a feeling of satisfaction among employees.

OTHER BENEFITS ARE AS FOLLOWS: -

• Welfare facilities provide better physical and mental health to the workers and make them happy.

• Such service facilities like housing scheme, medical benefits, Education and recreation facilities for the workers, families help create contented workers families.

• Employers get stable labor force due to the provision of welfare facilities; workers take active interest in their jobs and work with a feeling of involvement and satisfaction. They also find their work interesting.

• Employee welfare measures raise lobour productivity and bring Industrial peace and cordial labour- management relations.

• An employer is able to attract talented workers from the lobour market by providing attractive welfare facilities.

The social evils prevalent in the lobour force such as gambling, drinking, etc are reduced. Welfare activities by the employer bring improvement in the health of the workers and keep the cheerful.

AREA OF PRACTICAL EXPERIENCE

• Study and observation of personnel department.• Study about recruitment and selection procedure.

• Study about reservation policy.• Observation and Maintaining canteen.• Study and observation of PR (Public Relation) Department.• Maintaining leave records• Study about Administrative department function.• Study and maintaining employee’s record.• Pay fixation.• Pension calculation.• Study and observation of service record maintained.• Study of the function and working of time office.• Learning about working of PF. Section.• Study about disciplinary actions.• Observation procedure regarding promotion, transfer etc.• Learning about HRD training procedure.• Study about function of Vigilance.• Study and observation about labour laws.• Study about Welfare scheme.

OBSERVATIONS

1. PERSONNEL &ADMINISTRATION Dept. executives and all staff maintain an attitude of cooperation and assistance.

2. Mobile camera is not allowed inside the company but with few exceptions.

3. Maintaining safety provisions and safety level to the highest standard.

SWOTANALYSIS

SWOT ANALYSIS

STRENGTHS: The main strength of NFL Panipat is their employees. The total no. of employees is 900 approximately.

• Right people at right place

• Good working conditions

• Social security

• Financially sound company

WEAKNESSES:

• Willing people are overloaded

• Staff’s much more involvement in work

• Industrial pollution

OPPURTUNITIES:

• Growth in fertilizer consumption in eastern market of the company.

• Marketing of agricultural input services under one roof.

• Marketing /production of seed pesticides.

• Marketing of the engineering services and association in joint ventures in India /abroad

THREATS:

• Declining trends in consumption of nitrogenous fertilizers in predominant market areas.

• Increase in competition.

CONCLUSION

CONCLUSION

From the findings and analysis it was seen that most of the employees are having the opinion that welfare schemes means job satisfaction, security and development.

Research has shown that most of the employees are satisfied with the welfare schemes facilitated by the company N.F.L and they are getting all the facilities in time and also according to their needs, which ultimately and automatically help company &employees to achieve common goal.

Thus management should take care of their workers by providing them different schemes so that they feel contented.

CASE STUDY

CASE STUDY

This case study is about the welfare schemes prevalent in NATIONAL FERTILIZERS LTD. It is an NFL employees’s case and here we will calculate the total benefits provided to the family of deceased.

CASE

An NFL employee named SUBHASH CHAND joined N.F.L on 17.08.78 as a sr. clerk. He worked sincerely for 28 yrs &10 months.He expired on 05.07.07. At that time he was enjoying the post of SENIOR MANAGER (Finance & Administration) having basic pay of Rs.19,200 + D.A 13851@71.1%.His due date of retirement was 31.12.2014 but in between he died due to severe illness .His wife namely Mrs. Santosh was the nominee .He also had three children named Shikha, Parul, & Nitin.

We have to calculate the total fund received by the bereaved family.It includes:

1. provident Fund 2. pension 3. Gratuity4. EDLI5. GPAI6. Social security7. Family welfare scheme 8. Benevolent scheme9. GSLI10.Leave Encashment

SOLUTION

( I ) PROVIDENT FUND

EPS A/C NO.

CONTRIBUTED P.F

ORIGINAL P.F

CO.CONTRIBUTION PERSONAL LOAN

82/6059SUBHASHCHAND

4,87,588/- 41,900/- 7,57,983/- 2,81,000/-

Net bal. 10,06,471 (with interest @8.5%)

( II ) PENSION

As per guidelines monthly child pension for each child should be equal to 25%of the amount admissible to the widow provided that the monthly child pension is for two children.(ceiling for calculating pension is Rs.6500/-)

Widow pension ( Mrs. santosh) = 2051/-Children pension 1). Kmr. shikha = 501/-2). Kmr. Parul =501/-

( III ) GRATUITY

Total service = 28 yrs 10 months 8 daysLast pay drawn = 32851 /-

Gratuity =( B P + D.A ) * 15/26 * no. of years of service

Therefore Gratuity = 32851.20 *15 * 29/26 =Rs.5,49,625.84

(IV) EDLI

Acc. to DLIS Act, 1976 approximately sum of Rs.1.25 lkh is given to the nominee of deceased.

(V)GPAI

This is not applicable in the case of Sh. Subhash Chand, because it is only provided in case of accidental death.

(VI)Social security scheme

Although his salary was 32851/-but acc. to this scheme restricted amountis 15000/-Left over service = 6 yrs 6 months 26 days so total left over service =78 months 50% left over service =78*50/100 = 39 months Total amount = 15000*39 = 5,85,000/- But total amount under social security is given in four instalments i.e. 40:20:20:20

INSTALMENTS GIVEN AMT. PERIOD

Ist5,85,000*40/100

=2,34000 /-Just after

death

IInd5,85,000*20/100

=1,17,000 /-After 1 yr

IIIrd5,85,000*20/100

=1,17,000 /-After 2 yrs

IVth5,85,000*20/100

=1,17,000 /-After 3 yrs

( VII ) Family welfare scheme

Total no. of employees =900Each employees contribution =Rs.5 /- Total amount =900* 5 = 4500/-

( VIII ) Benevolent Fund

Total strength of company = 4890 Each employees contribution =Rs.25/-Total amount = 4890 * 25 =1,22,250/-

(IX) GSLI

Subhash Chand’s contribution =120/- p.mTotal Service =28 years & 10 monthsAmount accumulated =41520/-Interest @ 11% = 29686.865% of the amount accumulated= 26988Basic amount= 120000Total GSLI= 29686.8+26988+120000= 176674.8/-

(X) Leave Encashment

Total leave =240 daysBasic pay +D.A =32851Leave encashment =240*32851/26L.E = 303240/-

(XI)Funeral charges = 2500/-

Total amount given to the nominee of the deceased= 28,75,261.6/- + Pension of 3053/- p.m

BIBLIOGRAPHY

BIBLIOGRAPHY

➢ Factories Act, 1948

➢ Labour welfare, social security and industrial peace in India by Mamoria & Mamoria.

➢ Vani (National Fertilizer Ltd. , corporate office, New Delhi

➢ Human resource Management by CB.Gupta.

➢ National fertilizers.com

➢ Matter and references from NFL library.

➢ Alta vista goggle and other search engines

THANK YOU